Prepare Journal Entries for the Following Transactions for Design Imports

question 77

Essay

Prepare journal entries for the following transactions for Design Imports.
a) Purchased $7,800 of merchandise (perpetual inventory method) from Serial Material Company on account.
b) Gave Serial Material Company a 120-day, 5% note in settlement of the account payable.
c) Design Imports defaulted on its note on the maturity date.
d) Design Imports paid the previously defaulted note plus $115 additional interest.

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Definitions:

Promote

The act of raising something in rank, importance, or quality, often used in the context of elevating a product, idea, or individual in status.

Demote

To lower in rank, status, or importance.

Odd And Even Pages

Refer to the distinction in formatting or numbering between odd-numbered pages and even-numbered pages in a document, often used in print settings.

Table of Figures

A list in a document that identifies the figures, charts, or tables in the order that they appear, often with accompanying page numbers.